Position Size Calculator for Traders

Position sizing is the most important risk management decision you make on every trade. Use our free calculator below.

The 1-2% rule

Never risk more than 1-2% of your account on a single trade. This means if your account is $10,000, your maximum risk per trade is $100-$200.

Position size formula

Position Size = (Account × Risk%) ÷ (Entry - Stop Loss)

Example: $10,000 account, 1% risk, entry at $100, stop at $95:
Position Size = ($10,000 × 1%) ÷ ($100 - $95) = $100 ÷ $5 = 20 shares

Interactive Calculator

Position sizing by asset class

• Stocks — standard shares; use dollar stop distance
• Forex — pip value × lots; 1 mini lot = $1/pip on USD pairs
• Crypto — treat as high-volatility; use 0.5% risk for volatile assets
• Futures — factor in tick value and contract multiplier

Tidava's AI signals include a conviction score you can use to scale position size — higher conviction = full size, lower conviction = half size.